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Hardie gave early warning of move

By Elisabeth Sexton
October 7, 2004

 

Staff members of the Prime Minister, John Howard, and Treasurer, Peter Costello, received separate advance briefings about plans by James Hardie Industries to move to the Netherlands, Mr Costello's office confirmed yesterday.

The move's impact on compensation for Australian victims of asbestos diseases was examined in the recent inquiry into a possible $2 billion shortfall by former James Hardie subsidiaries.

Responding to a wire service report, a spokesman for Mr Costello said the briefings had taken place at the company's request "to hear a presentation on the tax consequences of the company's relocation to the Netherlands in July 2001".

The spokesman said there was no discussion of the asbestos liability and neither Mr Howard nor Mr Costello had met company representatives.

A spokesman for the shadow treasurer, Simon Crean, said his office had no record of whether or not a similar briefing had taken place with Opposition officials.

The move to the Netherlands was approved by the NSW Supreme Court in October 2001. James Hardie assured the court that no asbestos claimant would be disadvantaged by the move.

On the eve of the company's move, Mr Costello announced a change to the tax law widely interpreted at the time as an attempt to keep the company - and its tax payments - in Australia.

 

 

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